Quantum Materials Corp. (fka QTMM)

[Jamis1]

What you are you talking about? There was never 80% upfront for the $7-10 million. It was an 80% payment on the reactor order. The contract doesn't specify what percent is being paid upon order. We have to assume the value is 80% of total for item 4.2.a below.

The $7-10 million was a forecast for total revenue in 2019. They should have now received 20% of the $10 million to date per the contract and PRs.

They've now been paid $2 million (assuming second $500k was received ahead of reactor order). Things are moving along. When you're have no leverage over your client, payments don't come fast. I know from experience with my projects. The last project took 4 months for us to get final payments from them and they delayed almost every payment by 1-2 months due to various excuses. You don't ruffle feathers with your biggest client over late payments.

Section 4.1 Upfront Fee. The Licensee shall pay the Licensor an upfront payment of $500,000.00 within [30] business days after the Effective Date and an additional $500,000.00 within 60 days after the effective date .

Section 4.2 Purchase of Equipment.

(a) Reactors. The Licensee shall purchase two (2) production reactors used for the production of Licensed Products for an aggregate purchase price of $[**Confidential Treatment Requested], payable as follows:

(i) $[**Confidential Treatment Requested] shall be payable within 60 business days after the Effective Date;
(ii) $[**Confidential Treatment Requested] shall be payable immediately upon delivery to the licensees designated freight forwarder; and
(iii) $[**Confidential Treatment Requested] shall be payable when the reactors are received, setup and operational, as determined by the Licensor.

[**Confidential Treatment Requested] indicates that portions of this document have been redacted and filed separately with the Securities and Exchange Commission.

(b) Schlenk Line Equipment. The Licensee shall purchase the automated equipment for two (2) Schlenk lines from the Licensor for an aggregate purchase price of $[**Confidential Treatment Requested], payable 50% with order and 40% upon delivery to licensees designated freight forwarder and balance once equipment is received, setup and operational as determined by Licensor.

(c) Inline Equipment. The Licensee shall purchase the inline laminating, printing and associated equipment from the Licensor for an aggregate purchase price of $[**Confidential Treatment Requested], payable 50% with order and 40% upon delivery to licensees designated freight forwarder and balance once equipment is received, setup and operational as determined by Licensor.

(d) Other Equipment. The Licensee shall purchase related to the License and Licensed Products exclusively from the Licensor at the Licensor’s then-prevailing prices and terms.

https://www.sec.gov/Archives/edgar/data/1403570/000149315219002055/ex10-1.htm